MFJ Client with 3 children has $45,000 of Unemployment income, and $25,000 wages. Why don't they get refundable EITC?

Forum|Forum|5 years ago
June 25, 2021
2 replies
22 views

EIC worksheet calculates the EIC with 3 qualifying children but then takes away the credit because AGI is

too high for EIC. Shouldn't they get refundable EIC because Unemployment income is not used in

the calculation? What am I missing? There is no Income tax because of other credits but why no refundable EIC?

Thanks to all,

CCnestegg

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

I don't understand why you keep saying "refundable EIC" EIC is always refundable...are you referring to the refundable portion of the ACTC?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

T

TaxGuyBill

Level 15

@NesteggBuilder wrote:

because AGI is too high for EIC.

Shouldn't they get refundable EIC because Unemployment income is not used in the calculation?

EIC is based on "Earned Income", but in many cases high AGI can reduce or eliminate it.

Taxable Unemployment is part of AGI, therefore it *IS* part of the calculation.

PATAX

Level 12

@TaxGuyBill @NesteggBuilder @Just-Lisa-Now- Intuit / Pro Series has always done a good job on the earned income credit as far as my experience with it goes...

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